2018 to mark milestone for digital video advertising | Social TV | News | Rapid TV News
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eMarketer’s latest ad spending forecast is predicting that 2018 will see US digital video advertising setting new standards, growing nearly 30% to $27.82 billion and making up a quarter of all US digital ad spending.

eMarketer 10Oct2018Of the key trends and dynamics, Facebook will take a grip on the digital video market and, when including Instagram, is projected to capture 24.5% of all video ad spending in the US this year, totalling $6.81 billion. eMarketer expects that this dominance will continue over the forecast period, with double-digit growth through 2020, and calculates that Facebook currently controls nearly 87% of US social network video ad spending.

“In-feed video has been a successful ad format for both Facebook and Instagram,” said eMarketer principal analyst Debra Aho Williamson. “Marketers rely on in-feed video ads to capture users’ attention and build brand awareness. A newer video ad format, in-stream advertising in Facebook Watch shows, is still relatively new, but we think advertisers will increase their usage of it because it is similar to linear TV advertising.”

Looking at social media rivals, the report suggests that Snapchat’s US video revenues will reach $397.3 million by the end of 2018, up nearly 19% year-on-year. Video was seen to be far the driving force behind Snapchat’s revenues, representing three-fifths of its US ad business through 2020. However, eMarketer noted that Snapchat’s share of social video spending will be 5.1% this year, while its share of the overall US video business will be just 1.4%. it predicts that its share will continue to grow slightly through 2020.

eMarketer also calculates that Twitter will derive more than half (55%) of its total US ad revenues from video in 2018 with video ad revenues growing just over 12% to $633.3 million. That said the analysis gives Twitter an 8.1% share of US social video ad spending, and a 2.3% share of total video spending. eMarketer expects this share to continue to drop slightly through 2020.

By means of comparison to show the full effect of social networks in the digital video ad space, eMarketer noted that in 2018 YouTube will likely generate $3.36 billion in net US video ad revenues, up 17.1% over last year. YouTube now derives 73% of its ad revenues from video in the US and overall represents a steady 11% of Google’s net US ad revenues.